Costs to build 5 duplexes
I have an opportunity to purchase land currently zoned and approved for 5 duplexes (or 8 SF). It is 3 miles from a university and I am thinking of building student rentals, (doing the 5 duplex option). My commercial lender has funded a similar project in the same town. 4 bedrooms each side, with porches and garages at $170/SF. Does this sound like the cost for an investor like me to build and hire a GC, or does it sound like a GC's cost who is building/GCing it himself without a markup added? I want to have a general idea before meeting with contractors in case this is $50/SF under what I would have to pay to hire a GC, because if so it may knock me out of the deal. Hopefully I am articulating my question clearly. Thanks for your thoughts on this!
Most Popular Reply
It does depend on the city and cost of labor.
I would suggest you reach out to multiple contractors in the city with good reviews and see what the prevailing average per sq ft for something like this is.
I would say: $170 per sq ft is his costs : and even if he was willing to give you a good price, I would say it would be closer to $200 to $230 per sq ft not counting utilities (sewer, water lines, electrical lines from the st and even hardscape) and not including permit and architectural costs.
usually I see about $200 to $250 per sq ft for construction only and if you have a relationship with the contractors : otherwise the price could be about $300 to $400 per sq st (that's for standard material and single level) anything outside of that would be more.
And just bc I can get $200 per sq ft in CA does not mean you can where ever you are and why it is important to interview contractors in your area that are GOOD and trustworthy.